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This entry was published on 2014-09-22
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SECTION 595
Grounds for suspension or revocation of license, or suspension or deletion of name from mortgage broker roll
Banking (BNK) CHAPTER 2, ARTICLE 12-D
§ 595. Grounds for suspension or revocation of license, or suspension
or deletion of name from mortgage broker roll. 1. The superintendent may
revoke any license to engage in the business of a mortgage banker issued
pursuant to this article or delete the name of a mortgage broker from
the roll of mortgage brokers registered pursuant to this article if he
shall find that:

(a) Through a course of conduct, the licensee or registrant has
violated any provisions of this article, or any rule or regulation
promulgated by the superintendent of financial services under and within
the authority of this article or of any other law, rule or regulation of
this state or the federal government;

(b) Any fact or condition exists which, if it had existed at the time
of the original application for such license or registration, would have
warranted the superintendent in refusing originally to issue such
license;

(c) The commission by a licensee or registrant of a crime against the
laws of this state or any other state or of the United States involving
moral turpitude or fraudulent or dishonest dealing, or the entry of a
final judgment against a licensee or registrant in a civil action upon
grounds of fraud, misrepresentation or deceit;

(d) As a part of such determination regarding suspension or
revocation, the superintendent is authorized to require the
fingerprinting of any licensee or registrant. Such fingerprints shall be
submitted to the division of criminal justice services for a state
criminal history record check, as defined in subdivision one of section
three thousand thirty-five of the education law, and may be submitted to
the federal bureau of investigation for a national criminal history
record check.

2. The superintendent may, on good cause shown, or where there is a
substantial risk of public harm, suspend any license or delete the name
of any registrant for a period not exceeding thirty days, pending
investigation. "Good cause", as used in this subdivision, shall exist
only when the licensee or registrant has defaulted or is likely to
default in performing its financial engagements or engages in dishonest
or inequitable practices which may cause substantial harm to the persons
afforded the protection of this article.

3. Except as provided in subdivision two of this section, no license
or registration shall be revoked or suspended except after notice and a
hearing thereon. Any order of suspension issued after notice and a
hearing may include as a condition of reinstatement that the licensee or
registrant make restitution to consumers of fees or other charges which
have been improperly charged or collected as determined by the
superintendent.

4. Any licensee or registrant may surrender any license or certificate
by delivering to the superintendent written notice that it thereby
surrenders such license or certificate, but such surrender shall not
affect such licensee's or registrant's civil or criminal liability for
acts committed prior to such surrender. If such surrender is made after
the issuance by the superintendent of a statement of charges and notice
of hearing, the superintendent may proceed against the licensee or
registrant as if such surrender had not taken place.

4-a. An expiration of registration in accordance with section five
hundred ninety-two-a of this article shall not affect such registrant's
civil or criminal liability for acts committed prior to such
expirations. If such expiration occurs after the issuance by the
superintendent of a statement of charges and notice of hearing, the
superintendent may proceed against the registrant as if such expiration
had not taken place.

5. No revocation, suspension, surrender or expiration of any license
or certificate shall impair or affect the obligation of any preexisting
lawful contract between the licensee or registrant and any person.

6. Every license or registration issued pursuant to this article shall
remain in force and effect until the same shall have expired in
accordance with section five hundred ninety-two-a of this article or
shall have been surrendered, revoked or suspended in accordance with any
other provisions of this article, but the superintendent shall have
authority to reinstate a suspended license or certificate or to issue a
new license or certificate to a licensee or registrant whose license or
registration shall have been revoked if no fact or condition then exists
which would have warranted the superintendent in refusing originally to
issue such license or registration under this article.

7. Whenever the superintendent shall revoke or suspend a license or
registration issued pursuant to this article, he shall forthwith execute
in duplicate a written order to that effect. The superintendent shall
file one copy of such order in the office of the department of financial
services and shall forthwith serve the other copy upon the licensee or
registrant. Any such order may be reviewed in the manner provided by
article seventy-eight of the civil practice law and rules. Such
application for review as authorized by this section must be made within
thirty days from the date of such order of suspension or revocation.

7-a. Whenever a registration shall have expired in accordance with
section five hundred ninety-two-a of this article, the superintendent
shall notify the registrant that the registration has expired and that
the registrant may not engage in the business of soliciting, processing,
placing or negotiating a mortgage loan or offering to solicit, process,
place or negotiate a mortgage loan in this state.

8. Any hearing held pursuant to the provisions of this section shall
be noticed, conducted and administered in compliance with the state
administrative procedure act.